Since our last communication last Thursday, the situation in the international financial system has developed in a very agitated way. The uncertainties in the American region due to the bankruptcies of the two commercial banks "Silicon Valley Bank" and "Signature Bank" have spread to the European continent within a very short time. The main victim of the general uncertainty last week was the major Swiss bank Credit Suisse (CS), which experienced a massive withdrawal of client deposits and was finally taken over by the largest Swiss bank UBS over the weekend under the involvement and pressure of the Swiss government and authorities.
The takeover of CS by UBS has contributed to a significant easing of the international financial system. The stock markets have recovered noticeably and volatility has decreased noticeably. At the same time, interest rates on the capital market have fallen due to the flight of investors into safe asset classes. UBS itself seems to have coped well with the takeover of CS. After a brief dip, the share has risen by around 5% in the course of the week so far.